Airbus takes lead in Dutch KLM jet contest - sources

The Airbus logo pictured at the company's headquarters in Blagnac near Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau/File Photois closing towards a possible breakthrough at Dutch airline KLM, potentially displacing Boeing as its supplier of medium-haul jets, three people familiar with the matter said on Wednesday.

The European planemaker has taken the lead in a bid to supply A321neo jets to the Dutch national carrier, beating rival Boeing'sBoeing remains in contention to keep its spot as supplier to the group's low-cost carrier Transavia, the people said, asking not to be named. Talks on the widely watched pair of deals could go down to the wire, they cautioned.Air France-KLM said it had made no decision on a tender announced earlier this year. Airbus and Boeing declined comment.

The Franco-Dutch airline launched a tender earlier this year to renew and expand the medium-haul Boeing 737 fleet at KLM and the French and Dutch operations of Transavia. Chief Executive Ben Smith has said combined the deal could involve a firm purchase of 80 aircraft with options for another 60 to 80 in what would be the group's biggest single fleet transaction.to lose after a long association with KLM, but Smith stressed in September the group was talking to both major suppliers and holding parallel talks with engine makers.

Factors weighing in Airbus's favour in recent months have included a gradual thawing of relations between French and Dutch arms of the airline group, which have different suppliers, and tensions over recent Boeing 787 delays, the people said.Register now for FREE unlimited access to reuters.comOur Standards:Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

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